Innovative Adoption of Technology in Smes: Insights From Digital Leadership and Sustainability Models

This study aims to analyze the factors influencing the adoption of cashless payments and sustainability innovation in SMEs in Padang City. A quantitative approach was used with a non-probability sampling technique through purposive sampling, selecting respondents who have adopted cashless payment systems. The study employs a two-step method: first, confirmatory factor analysis (CFA) to test the reliability and validity of the model, and second, structural modeling and path analysis to test the developed hypotheses. The survey was conducted using paper-based and online questionnaires, considering the post-COVID-19 pandemic situation. A total of 600 questionnaires were distributed, with a sample size requirement of 5 to 20 items observed. SmartPLS was used for the analysis to examine the structural model and moderation effects. The results of this study are expected to provide insights into the factors influencing technology adoption and sustainability innovation in SMEs and offer recommendations for developing digitalization policies in the small and medium business sector.